| A | B |
|---|
| The things used in making goods and providing services | resources |
| The amount of each good and service available to consumers | supply |
| The amount of good and service that consumers are willing to buy | demand |
| The people who buy and use products | consumers |
| The money needed to produce goods and services | capital |
| The building, machines, and tools used to make goods and produce services | capital goods |
| When each worker/group does one kind of job | division of labor |
| People who risk their money, time, and energy to start a new business | entrepreneurs |
| Getting goods to the consumers | marketing |
| An economic system in which the government makes all the decisions about what, how, how many, and who gets products | command economy |
| An economic system in which the consumers make basic economic decisions according to principles of supply and demand | market economy |
| Economy in which individuals put their capital, or money, into business in hopes of making a profit; related to the market economy | capitalism |
| Economic freedoms of individuals to own their own property, to go into business for themselves, and to buy and sell things to make a profit | free enterprise |
| Economic system in which individuals and government share the decision-making process; production means owned privately, but guided and regulated by government | mixed economy |
| The study of how we produce and distribute our wealth | economics |
| Any item that can be bought or sold | good |
| Any action that one person or group does for another in exchange for payment | service |
| The process of changing raw materials of resources into economic goods or services that can be used to satisfy desires | production |
| Inability to satisfy all wants at the same time; not enough resources; goods are limited | scarcity |
| Selection of an item or action from a group of possibilities | choice |
| The amount of money exchanged for a good or service; interaction of supply and demand determine this | price |
| What is given up when a choice is made | opportunity cost |
| Things that incite or motivate; change economic behavior | incentives |
| Purchase of goods and services based on consumer preference | consumption |
| The money that remains in a business after incomes, supplies, loans, taxes, and fees are paid | profit |
| Rivalry between sellers of goods and services; results in better-quality at lower prices | competition |
| Consumer purchases determine what goods and services will be produced | consumer sovereignty |
| Business that one person (or married couple) owns | sole proprietorship |
| Business owned by two or more people | partnership |
| Large business with many owners | corporation |
| Business that deals with money | banking |
| The central bank of the U.S. | Federal Reserve Bank |
| Buying of something that purchaser expects to increase in value | investment |
